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Jefferies Sees Big Upside from 4 Upcoming Near-Term Biotech Catalysts

If there is one area that can generate riches for speculative investors, it would have to be biotech and emerging pharma. After all, how many companies can go from nothing to billions in sales in a short time. Savvy investors are also well aware that these companies can turn a large fortune into a small fortune for those speculative investors who make the wrong moves.

Jefferies has screened through a whopping 250 notable stock catalysts that are expected to occur in the next six to 12 months from its biotech universe. Some of these companies had multiple catalysts. That generated close to 100 companies in its coverage, and then the firm narrowed its focus down to a dozen near-term catalysts coming up for this space.


According to Jefferies, these companies have a risk/reward scenario that is more attractive now with investors paying more attention to biotech. The firm also has noted a that many biotechs have significantly outperformed the market after releasing positive data in the past few months. Jefferies has a Buy rating on most of the companies covered here.

In an effort to narrow the focus, 24/7 Wall St. screened out the companies that were too small (under $300 million), and we also screened out the companies that were already too large (over $5 billion) in effort to maximize the catalyst value. When companies are too small they may only have one horse in the race, and when companies are too large they often have many moving parts that can make one event less pertinent for “catalyst investing” themes.

We also screened out the stocks with a consensus analyst target price from Thomson Reuters that was lower than the current share price, even if Jefferies was more optimistic than the average analyst. And another company was screened out because of a 10% post-earnings drop on Monday alone...